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State Energy Efficiency Policy Database
South Dakota
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(Research Report - 4/22/2013)
(Research Report - 5/16/2012)
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(Press Release - 10/3/2012)
(Press Release - 2/16/2012)
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South Dakota Utility Policies
Over the last 6 years South Dakota’s utilities have been implementing ratepayer funded energy efficiency programs. Only one utility does not currently have a program in place but it is currently requesting permission from the Commission to do so. In addition, South Dakota instituted an electric utility performance incentive program. In 2010 the South Dakota Public Utilities Commission authorized a lost revenue adjustment mechanism for Northwestern Energy for both gas and electric efficiency programs.
The Public Utilities Commission reports that electric program budgets for 2010 were $3.5 million. South Dakota electric utilities saved approximately 21,828 MWh in 2009.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Links:
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October 12, 2012
South Dakota's utilities run energy efficiency programs for a range of customer types. South Dakota electric utilities saved approximately 21,828 MWh in 2009, but this total will certainly grow as utilities such as Otter Tail Power and MidAmerican Energy ramp-up programs.
South Dakota's adoption of energy efficiency can partly be attributed to a collaborative effort, the South Dakota Energy Smart Initiative, which brings together partners to pledge their support of improving energy efficiency in South Dakota. Partners include both investor-owned and publicly owned utilities, which report numerous plans and new efforts to offer energy efficiency programs and services to their customers.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Links:
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October 12, 2012
The State Public Utilities Commission reports that the electric energy efficiency program budget for 2010 was $3.5 million. The natural gas program budget totaled $1.4 million in 2010.
Reported budgets for energy efficiency programs for 2011 are in the State Spending and Savings Tables.
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October 12, 2012
There is currently no EERS in place.
For more information on Energy Efficiency Resource Standards, click here.
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March 28, 2013
In 2010 the South Dakota Public Utilities Commission authorized a lost revenue adjustment mechanism for Northwestern Energy for both gas and electric efficiency programs (GE09-001). The mechanism will take into account two calculations: The actual DSM program costs incurred, and the calculated lost revenues based on reported DSM savings for the 2010 start-up period; and a forecast of DSM program costs and lost revenues that are developed for January through December 2011. Any over/under collection for the first year (including interest), plus forecasted DSM program costs and lost revenues for the second year are added together to compute rates for the second year.
Links:
- South Dakota Public Utilities Commission docket search
- Northwestern Energy DSM Plan (LRA mechanism explained on pg. 27-34)
- Northwestern Energy (GE09-001)
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October 12, 2012
South Dakota has approved performance incentives through various mechanisms. In 2008, OtterTail Power received approval for its energy efficiency programs, with a flat-rate bonus if the utility met its efficiency goals. In 2009, the Commission approved a similar mechanism for MidAmerican Energy. In 2010, MidAmerican’s incentive was amended to a straight return based on a percentage of the program budget. Montana-Dakota Utilities and Northwestern Energy have similar approved mechanisms.
Links:
- MidAmerican (2008) (Docket No. EL-07-015)
- MidAmerican (2010) (GE10-001)
- Montana Dakota Utilities (NG09-001)
- Northwestern Energy (GE09-001)
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October 12, 2012
There is currently no policy in place that treats energy efficiency as a resource.
For more information on energy efficiency as a resource, click here.
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March 28, 2013
- Cost-effectiveness test(s) used: TRC, RIM
- Uses a deemed savings database: no
The evaluation of ratepayer-funded energy efficiency programs in South Dakota relies on both regulatory orders and legislative mandates. Evaluations are mainly administered by the utilities. There are no specific legal requirements for these evaluations in South Dakota. South Dakota uses two of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC) and Ratepayer Impact Measure (RIM) test. South Dakota specifies the TRC to be its primary test for decision making. The benefit-cost tests are required for total program, customer project, and individual measure level screening, with some exceptions for low-income programs, pilots, and new technologies. No rules for benefit-cost tests are specified.
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March 27, 2013